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8-K - FORM 8-K - SUNRISE SENIOR LIVING INCd8k.htm
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Exhibit 99.1

LOGO

Investor Relations Contact

Tim Smith, 703-854-0348

 

For immediate release   Media Contact
February 25, 2011   Meghan Lublin, 703-854-0299

Sunrise Reports Financial Results for Fourth Quarter and Full Year of 2010

Files Additional Supplemental Information in 8-K

MCLEAN, VA - Sunrise Senior Living, Inc. (NYSE: SRZ) today reported financial results and operating data for the fourth quarter and full year of 2010. Sunrise will host a conference call and webcast Friday, February 25, 2011, at 9:00 a.m. ET, to discuss the financial results.

“2010 was a year of strengthening Sunrise and we are now well positioned to take advantage of great opportunities in 2011 and the years to come,” said Mark Ordan, Sunrise’s chief executive officer. “Bottom line 2010 performance is benefitted by outsized gains realized in our restructuring. Our operating results are adversely affected by the reduction of revenue from our restructuring without an equivalent reduction of expenses, and our G&A was adversely affected by non-recurring items. While we are excited by our progress, optimistic and committed to our future, we have in our 10-K and supplemental 8-K provided investors with meaningful additional detail to enable a fuller understanding of both our progress and of the risks we still need to tackle.”

2010 Overview

During 2010, Sunrise sold its nine German communities, executed debt restructuring agreements with its German lenders, sold land parcels, sold its venture interests to Ventas, modified, extended and amended certain venture and management agreements, and entered into management agreement buyouts. Sunrise used the majority of the proceeds from these transactions to reduce outstanding indebtedness. As a result of these management agreement buyouts, the Company now manages 32 fewer communities. Sunrise earned $13.0 million, $17.2 million and $17.7 million of management fees from the 32 terminated communities in 2010, 2009 and 2008, respectively. Sunrise expects to reduce its corporate overhead to partially offset its reduced management fee income.

2010 Annual Results

Sunrise reported total operating revenues of $1.4 billion for the twelve months ended December 31, 2010, as compared to $1.5 billion for the twelve months ended December 31, 2009. Net income was greatly increased by non-recurring factors and was $99.1 million, or $1.72 per fully diluted share, for the twelve months ended 2010. This included $63.3 million of buyout fees and $68.5 million of income from discontinued operations, as compared to net loss of ($133.9) million, or ($2.61) per fully diluted share, for the twelve months ended December 31, 2009. A significant portion of Sunrise’s ongoing management fee income is heavily concentrated with four business partners, as outlined in the Company’s 2010 Form 10-K.

Adjusted income from ongoing operations was $15.6 million for the twelve months ended December 31, 2010, as compared to an adjusted income of $15.9 million for the twelve months ended December 31, 2009. Adjusted EBITDAR for the twelve months ended December 31, 2010, was $117.9 million as compared to $131.1 million for the twelve months ended December 31, 2009. Adjusted income from ongoing operations and Adjusted EBITDAR are measures of operating performance that are not calculated in accordance with U.S. GAAP and should not be considered as a substitute for income or loss from operations or net income or loss. These are used by management to focus on income generated from the ongoing operations of the Company and to help management assess if adjustments to current spending decisions are needed. For a reconciliation of these items, please refer to the attached tables “Adjusted Income from Ongoing Operations” and “Adjusted EBITDAR Reconciliation.”

 

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2010 Fourth Quarter Results

In the fourth quarter of 2010, Sunrise reported revenues of $319.0 million as compared to $363.0 million for the fourth quarter of 2009. Net income for the fourth quarter of 2010 was $50.0 million or $0.87 per fully diluted share, as compared to net income of $10.4 million, or $0.19 per fully diluted share, for the fourth quarter of 2009. The change between periods was primarily driven by a $10 million buy-out fee paid by HCP and a $25 million gain resulting from the sale of our venture interest to Ventas.

Adjusted income from ongoing operations was $1.6 million in the fourth quarter of 2010 as compared to an adjusted income of $6.3 million in the fourth quarter of 2009. Adjusted EBITDAR for the fourth quarter of 2010 was $25.7 million as compared to $42.1 million for the fourth quarter of 2009.

Cash and Liquidity Update

Sunrise had $66.7 million of unrestricted cash at December 31, 2010. As of December 31, 2010, Sunrise had significantly reduced its consolidated debt to $163.0 million, as compared to $440.2 million at December 31, 2009, a reduction of $277.2 million.

New Venture Transaction

As previously announced, on January 10, 2011, Sunrise closed on the purchase and sale agreement with a wholly owned subsidiary of CNL Lifestyle Properties and an affiliate of Arcapita, which was Sunrise’s joint venture partner in 29 Sunrise-managed communities. As part of the agreement, Sunrise contributed its 10-percent ownership interest in the existing venture for a 40-percent ownership interest in a new venture. The portfolio was valued at approximately $630 million (excluding transaction costs). As part of the Company’s new venture agreement with a wholly owned subsidiary of CNL Lifestyle Properties, Sunrise will have the option to purchase CNL’s interest in the venture beginning from the start of year three to the end of year six. Sunrise’s share of the transaction costs is approximately $5.7 million (excluding the funding of escrows), which was expensed as incurred ($1.5 million in the fourth quarter of 2010 and $4.2 million in January 2011).

Ventas

Effective December 1, 2010, Sunrise closed on the previously disclosed purchase and sale agreements with Ventas, Inc. and certain of its affiliates to sell to Ventas all of Sunrise’s joint venture interests in nine limited liability companies in the U.S. and two limited partnerships in Canada, which collectively own 58 communities managed by Sunrise. The aggregate purchase price for the venture interests was approximately $41.5 million. Sunrise used the proceeds from the transaction, after expenses, to pay down its debt obligations and for working capital. In connection with this transaction, Sunrise recorded a $25.0 million gain on the sale of its venture interests.

Sunrise continues to manage the 58 senior living communities, together with the other 21 senior living communities in the Ventas portfolio that are already wholly owned by Ventas, pursuant to amended and restated master and management agreements entered into in connection with the purchase and sale transaction.

Operating Data for Fourth-Quarter 2010

 

   

Comparable community revenues for the fourth quarter of 2010 increased by 4.8 percent, from $442.8 million for the fourth quarter of 2009 to $464.0 million for the fourth quarter of 2010. Excluding the impact of foreign exchange rates in 2010, comparable community revenues for the fourth quarter of 2010 increased 4.8 percent to $463.9 million year-over-year.

 

   

Average unit occupancy in comparable communities for the fourth quarter of 2010 was 88.3 percent, which was up 80 basis points from 87.5 percent for the fourth quarter of 2009, and up 60 basis points as compared to 87.7 percent in the third quarter of 2010.

 

   

Average daily revenue per occupied unit in comparable communities increased 3.7 percent from $198.92 for the fourth quarter of 2009 to $206.32 for the fourth quarter of 2010. Excluding the impact of foreign exchange rates in 2010, average daily revenue per occupied unit for the comparable community portfolio increased 3.7 percent to $206.27 for the fourth quarter of 2010 as compared to the fourth quarter of 2009.

 

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Comparable community operating expenses for the fourth quarter of 2010 increased 0.3 percent from $326.0 million to $327.1 million. Foreign exchange rates in 2010 did not significantly impact these operating expense results in the fourth quarter of 2010.

Sunrise’s comparable community portfolio consists of communities that were open and operating as of January 1, 2008, and include consolidated, unconsolidated venture, and managed communities in the United States, Canada and the United Kingdom. Sunrise’s management believes that total comparable-community revenues, average daily revenue per occupied unit, average unit occupancy rates and total comparable-community expenses are useful indicators of trends in Sunrise’s management business.

Supplemental Information

For additional details on Sunrise’s comparable-community data, please refer to the Supplemental Information attached. Also, additional supplemental information has been furnished to the Securities and Exchange Commission in a Form 8-K, and can also be found on the Supplemental Data link on the Investor Relations section of the Company’s Web site at http://suppdata.sunriseseniorliving.com/

Conference Call and Webcast

Sunrise will host a conference call and webcast at 9:00 a.m. ET on Friday, February 25, 2011, to discuss the financial results for the fourth quarter and full year of 2010 and the other matters discussed in this press release. The call-in number for the conference call is 888-554-1431 or 719-325-2196 (from outside the U.S.). Callers should reference the “Sunrise Senior Living Q4 Earnings Call” or the participant passcode: 5721106. Those interested may also go to the Investor Relations section of the Company’s Web site (http://www.sunriseseniorliving.com) to listen to the earnings call. A telephone replay of the call will be available until March 11, 2011 at 1 p.m. ET, by dialing 888-203-1112 or 719-457-0820 (passcode: 5721106); a replay will also be available on Sunrise’s Web site during that period.

About Sunrise Senior Living

Sunrise Senior Living, a McLean, Va.-based company, employs approximately 31,700 people. As of December 31, 2010, Sunrise operated 319 communities located in the United States, Canada and the United Kingdom, with a unit capacity of approximately 31,200 units. Sunrise offers a full range of personalized senior living services, including independent living, assisted living, care for individuals with Alzheimer’s and other forms of memory loss, as well as nursing and rehabilitative services. Sunrise’s senior living services are delivered by staff trained to encourage the independence, preserve the dignity, enable freedom of choice and protect the privacy of residents. To learn more about Sunrise, please visit http://www.sunriseseniorliving.com.

Forward-Looking Statements

Certain matters discussed in this press release may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although Sunrise believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, there can be no assurances that these expectations will be realized. Sunrise’s actual results could differ materially from those anticipated in these forward-looking statements as a result of various factors, including, but not limited to, the risk that the net sale proceeds of the mortgaged North American properties are not sufficient to pay the minimum amount guaranteed by Sunrise to the lenders that are party to the German restructure transactions; the risk that we may be unable to reduce expenses and generate positive operating cash flows; the risk of future obligations to fund guarantees to some of our ventures and lenders to the ventures; the risk of further write-downs or impairments of our assets; the risk that we are unable to obtain waivers, cure or reach agreements with respect to existing or future defaults under our loan, venture and construction agreements; the risk that we will be unable to repay, extend or refinance our indebtedness as it matures, or that we will not comply with loan covenants; the risk that our ventures will be unable to repay, extend or refinance their indebtedness as it matures, or that they will not comply with loan covenants creating a foreclosure risk to our venture interest and a termination risk to our management agreement; the risk that we are unable to continue to recognize income from refinancings and sales of communities by ventures; the risk of declining occupancies in existing communities or slower than expected leasing of newer communities; the risk that we are

 

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unable to extend leases on our operating properties at expiration, in some cases, the expiration is as early as 2013; the risk that some of our management agreements, subject to early termination provisions based on various performance measures, could be terminated due to failure to achieve the performance measures; the risk that our management agreements can be terminated in certain circumstances due to our failure to comply with the terms of the management agreements or to fulfill our obligations thereunder; the risk from competition and our response to pricing and promotional activities of our competitors; the risk of not complying with government regulations; the risk of new legislation or regulatory developments; the risk of changes in interest rates; the risk of unanticipated expenses; the risks of further downturns in general economic conditions including, but not limited to, financial market performance, downturns in the housing market, consumer credit availability, interest rates, inflation, energy prices, unemployment and consumer sentiment about the economy in general; the risks associated with the ownership and operation of assisted living and independent living communities; other risk factors contained in our 2010 Form 10-K filed with the SEC on February 25, 2011. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events. Unless the context suggests otherwise, references herein to “Sunrise,” the “Company,” “we,” “us” and “our” mean Sunrise Senior Living, Inc. and our consolidated subsidiaries.

 

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SUNRISE SENIOR LIVING, INC.

CONSOLIDATED BALANCE SHEETS

 

(In thousands, except per share and share amounts)    December 31,
2010
    December 31,
2009
 

ASSETS

    

Current Assets:

    

Cash and cash equivalents

   $ 66,720      $ 39,283   

Accounts receivable, net

     37,484        37,304   

Income taxes receivable

     4,532        5,371   

Due from unconsolidated communities

     19,135        19,673   

Deferred income taxes, net

     20,318        23,862   

Restricted cash

     43,355        39,365   

Assets held for sale

     1,099        40,658   

German assets held for sale

     —          104,720   

Prepaid expenses and other current assets

     20,167        30,198   
                

Total current assets

     212,810        340,434   

Property and equipment, net

     238,674        288,056   

Due from unconsolidated communities

     3,868        13,178   

Intangible assets, net

     40,749        53,024   

Investments in unconsolidated communities

     38,675        64,971   

Investments accounted for under the profit-sharing method

     —          11,031   

Restricted cash

     103,334        110,402   

Restricted investments in marketable securities

     2,509        20,997   

Assets held in the liquidating trust

     50,750        —     

Other assets, net

     10,089        8,496   
                

Total assets

   $ 701,458      $ 910,589   
                

LIABILITIES AND EQUITY

    

Current Liabilities:

    

Current maturities of debt

   $ 80,176      $ 207,811   

Outstanding draws on bank credit facility

     —          33,728   

Debt relating to German assets held for sale

     —          198,680   

Accounts payable and accrued expenses

     131,904        138,032   

Liabilities associated with German assets held for sale

     —          12,632   

Due to unconsolidated communities

     502        2,180   

Deferred revenue

     15,946        5,364   

Entrance fees

     30,688        33,157   

Self-insurance liabilities

     35,514        41,975   
                

Total current liabilities

     294,730        673,559   

Debt, less current maturities

     44,560        —     

Liquidating trust notes, at fair value

     38,264        —     

Investments accounted for under the profit-sharing method

     419        —     

Self-insurance liabilities

     51,870        58,225   

Deferred gains on the sale of real estate and deferred revenues

     16,187        21,865   

Deferred income tax liabilities

     20,318        23,862   

Other long-term liabilities, net

     110,553        106,844   
                

Total liabilities

     576,901        884,355   
                

Equity:

    

Preferred stock, $0.01 par value, 10,000,000 shares authorized, no shares issued and outstanding

     —          —     

Common stock, $0.01 par value, 120,000,000 shares authorized, 56,453,192 and 55,752,217 shares issued and outstanding, net of 428,026 and 401,353 treasury shares, at December 31, 2010 and 2009, respectively

     565        558   

Additional paid-in capital

     478,605        474,158   

Retained loss

     (361,904     (460,971

Accumulated other comprehensive income

     2,885        8,302   
                

Total stockholders’ equity

     120,151        22,047   
                

Noncontrolling interests

     4,406        4,187   
                

Total equity

     124,557        26,234   
                

Total liabilities and equity

   $ 701,458      $ 910,589   
                


SUNRISE SENIOR LIVING, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

 

     Three Months Ended
December 31,
    Twelve Months Ended
December 31,
 
(In thousands, except per share amounts)    2010     2009     2010     2009  
     (Unaudited)              

Operating revenue:

        

Management fees

   $ 26,399      $ 28,162      $ 107,832      $ 112,467   

Buyout fees

     9,815        —          63,286        —     

Resident fees for consolidated communities

     92,717        88,052        360,929        344,894   

Ancillary fees

     10,601        11,249        43,136        45,397   

Professional fees from development, marketing and other

     739        1,850        4,278        13,193   

Reimbursed costs incurred on behalf of managed communities

     178,761        233,651        827,240        942,809   
                                

Total operating revenue

     319,032        362,964        1,406,701        1,458,760   

Operating expenses:

        

Community expense for consolidated communities

     69,345        67,003        268,986        263,792   

Community lease expense

     15,192        14,747        60,215        59,315   

Depreciation and amortization

     11,865        9,557        41,083        46,312   

Ancillary expenses

     10,000        10,577        40,504        42,457   

General and administrative

     33,502        26,432        124,728        114,566   

Development expense

     1,070        2,117        4,484        12,374   

Write-off of capitalized project costs

     —          732        —          14,879   

Accounting Restatement, Special Independent Committee inquiry, SEC investigation and stockholder litigation

     (1,978     346        (1,305     3,887   

Restructuring costs

     805        7,120        11,690        32,534   

Provision for doubtful accounts

     2,630        2,454        6,244        13,319   

Loss on financial guarantees and other contracts

     41        590        518        2,053   

Impairment of long-lived assets

     1,274        19,362        5,907        31,685   

Costs incurred on behalf of managed communities

     179,154        228,461        831,008        949,331   
                                

Total operating expenses

     322,900        389,498        1,394,062        1,586,504   
                                

(Loss) income from operations

     (3,868     (26,534     12,639        (127,744

Other non-operating income (expense):

        

Interest income

     147        (77     1,096        1,341   

Interest expense

     (1,576     (2,679     (7,707     (10,273

Gain on investments

     (378     2,652        932        3,556   

Gain on fair value of liquidating trust notes

     4,019        —          5,240        —     

Other income

     2,043        2,103        1,181        6,553   
                                

Total other non-operating income

     4,255        1,999        742        1,177   

Gain on the sale and development of real estate and equity interests

     24,809        1,321        27,672        21,651   

Sunrise’s share of earnings (loss) and return on investment in unconsolidated communities

     10,710        (3,689     7,521        5,673   

Gain (loss) from investments accounted for under the profit-sharing method

     819        (3,651     (9,650     (12,808
                                

Income (loss) before (provision for) benefit from income taxes and discontinued operations

     36,725        (30,554     38,924        (112,051

(Provision for) benefit from income taxes

     (5,362     2,351        (6,559     3,942   
                                

Income (loss) before discontinued operations

     31,363        (28,203     32,365        (108,109

Discontinued operations, net of tax

     19,020        38,908        68,461        (25,406
                                

Net income (loss)

     50,383        10,705        100,826        (133,515

Less: Net income attributable to noncontrolling interests

     (370     (269     (1,759     (400
                                

Net income (loss) attributable to common shareholders

   $ 50,013      $ 10,436      $ 99,067      $ (133,915
                                

Earnings per share data:

        

Basic net income (loss) per common share

        

Income (loss) before discontinued operations

   $ 0.55      $ (0.53   $ 0.55      $ (2.12

Discontinued operations, net of tax

     0.35        0.72        1.23        (0.49
                                

Net income (loss)

   $ 0.90      $ 0.19      $ 1.78      $ (2.61
                                

Diluted net income (loss) per common share

        

Income (loss) before discontinued operations

   $ 0.54      $ (0.53   $ 0.53      $ (2.12

Discontinued operations, net of tax

     0.33        0.72        1.19        (0.49
                                

Net income (loss)

   $ 0.87      $ 0.19      $ 1.72      $ (2.61
                                


SUNRISE SENIOR LIVING, INC.

Reconciliation For EBITDA, Adjusted EBITDA/EBITDAR, and Adjusted Income from Ongoing Operations

EBITDA, Adjusted EBITDA, and Adjusted EBITDAR

EBITDA, adjusted EBITDA, and adjusted EBITDAR are measures of operating performance that are not calculated in accordance with U.S. generally accepted accounting principles and should not be considered as a substitute for income/loss from operations or net income/loss. EBITDA, adjusted EBITDA, and adjusted EBITDAR are used by management to focus on performance and liquidity as EBITDA excludes depreciation and amortization, interest income, interest expense, and (provision for) benefit from income taxes. Adjusted EBITDA further excludes accounting restatement, special independent committee inquiry, SEC investigation, stockholder litigation, buyout fees, restructuring costs, write-off of capitalized project costs, allowance for uncollectible receivables from owners, impairment of long-lived assets, gain (loss) on investments, gain on fair value of liquidating trust note, other income (expense), stock compensation, gain on the sale and development of real estate and equity interests, proportionate share of joint venture interest, taxes, depreciation, and amortization, loss from investments accounted for under the profit-sharing method, and discontinued operations (net of tax). Adjusted EBITDAR further excludes community lease expense.

The following table reconciles adjusted EBITDA and adjusted EBITDAR to net income (loss) attributable to common shareholders (in millions):

 

     Three Months  Ended
December 31,
    Twelve Months  Ended
December 31,
 
     2010     2009     2010     2009  

Net income (loss) attributable to common shareholders

   $ 50.0      $ 10.4      $ 99.1      $ (133.9
                                

Depreciation and amortization

     11.9        9.6        41.1        46.3   

Interest income

     (0.1     0.1        (1.1     (1.3

Interest expense

     1.6        2.7        7.7        10.3   

Provision for (benefit from) income taxes

     5.4        (2.4     6.6        (3.9
                                

EBITDA

     68.8        20.4        153.4        (82.5
                                

Accounting Restatement, Special Independent Committee inquiry, SEC investigation and stockholder litigation

     (2.0     0.3        (1.3     3.9   

Buyout Fees

     (9.8     —          (63.3     —     

Restructuring costs

     0.8        7.1        11.7        32.5   

Write-off of capitalized project costs

     —          0.7        —          14.9   

Allowance for uncollectible receivables from owners

     2.2        1.8        4.9        11.2   

Impairment of long-lived assets

     1.3        19.4        5.9        31.7   

(Gain) loss on investments

     0.4        (2.7     (0.9     (3.6

Gain on fair value of liquidating trust note

     (4.0     —          (5.2     —     

Other (income) expense

     (2.0     (2.1     (1.2     (6.6

Stock compensation

     1.1        0.3        4.0        3.1   

Gain on the sale and development of real estate and equity interests

     (24.8     (1.3     (27.7     (21.7

Proportionate Share of Joint Venture Interest, Taxes, Depr., and Amort.

     (1.7     18.7        36.2        50.7   

(Income) loss from investments accounted for under the profit-sharing method

     (0.8     3.7        9.7        12.8   

Discontinued operations, net of tax

     (19.0     (38.9     (68.5     25.4   
                                

Adjusted EBITDA

   $ 10.5      $ 27.4      $ 57.7      $ 71.8   
                                

Community Lease Expense

     15.2        14.7        60.2        59.3   
                                

Adjusted EBITDAR

   $ 25.7      $ 42.1      $ 117.9      $ 131.1   
                                

Adjusted Income (Loss) from Ongoing Operations

Adjusted income (loss) from ongoing operations is a measure of operating performance that is not calculated in accordance with U.S. generally accepted accounting principles and should not be considered as a substitute for income/loss from operations or net income/loss. Adjusted income (loss) from ongoing operations excludes buyout fees, non-cash charges including depreciation and amortization, allowance for uncollectible receivables from owners, stock compensation, and impairment of long-lived assets, as well as restructuring costs and additional SEC recoveries. Adjusted income (loss) from ongoing operations is used by management to focus on cash generated from our ongoing operations and to help management assess if adjustments to current spending decisions are needed.

The following table reconciles adjusted income (loss) from ongoing operations to income (loss) from operations (in millions):

 

     Three Months  Ended
December 31,
    Twelve Months  Ended
December 31,
 
     2010     2009     2010     2009  

Adjusted Income from Ongoing Operations

        

Income (loss) from operations

   $ (3.9   $ (26.5   $ 12.6      $ (127.7

Buyout fees

     (9.8     —          (63.3     —     
                                

Loss from operations excluding buyout fees

     (13.7     (26.5     (50.7     (127.7

Non-cash expenses:

        

Depreciation and amortization

     11.9        9.6        41.1        46.3   

Write-off of capitalized project costs

     —          0.7        —          14.9   

Allowance for uncollectible receivables from owners

     2.2        1.8        4.9        11.2   

Stock compensation

     1.1        0.3        4.0        3.1   

Impairment of long-lived assets

     1.3        19.4        5.9        31.7   
                                

Income (loss) from operations after adjustment for non-cash expenses

     2.8        5.3        5.2        (20.5

Accounting Restatement, Special Independent Committee inquiry, SEC investigation and stockholder litigation

     (2.0     0.3        (1.3     3.9   

Restructuring costs

     0.8        0.7        11.7        32.5   
                                

Adjusted income from ongoing operations

   $ 1.6      $ 6.3      $ 15.6      $ 15.9   
                                


Sunrise Senior Living, Inc.

Supplemental Information

As of December 31, 2010

($ in thousand except average daily rate)

 

     Communities
Q4 10
     Unit Capacity
Q4 10
    Resident Capacity
Q4 10
 

Total Community Data (1)

       

Communities managed for third-party owners

     144         13,252        15,144   

Communities in ventures

     137         10,987        12,843   

Communities consolidated

     38         6,931        7,135   
                         

Total communities operated

     319         31,170        35,122   
                         

Percentage of Total Operating Portfolio

       

Assisted Living

        81.0  

Independent Living

        16.0  

Skilled Nursing

        3.0  
             

Total

        100.0  
             

Selected Operating Results

 

Comparable Community Portfolio Operating Results (2)

   Q4 10     Q4 09     % Change        

Total Comparable-Community Portfolio

        

Number of Communities

     282        282        0.0  

Unit Capacity

     27,599        27,599        0.0  

Resident Capacity

     31,018        31,018        0.0  

Community Revenues

   $ 464,021      $ 442,789        4.8  

Community Revenues Excluding Impact of Exchange Rates

   $ 463,903      $ 442,789        4.8  

Community Operating Expenses

   $ 327,121      $ 325,998        -0.3  

Community Operating Expenses Excluding Impact of Exchange Rates

   $ 327,099      $ 325,998        -0.3  

Average Daily Revenue Per Occupied Unit

   $ 206.32      $ 198.92        3.7  

Average Daily Revenue Per Occupied Unit Excluding Impact of Exchange Rates

   $ 206.27      $ 198.92        3.7  

Average Unit Occupancy Rate

     88.3     87.5     80        basis points   

Communities in ventures and managed for third-party owners

        

Number of Communities

     248        248        0.0  

Unit Capacity

     21,013        21,013        0.0  

Resident Capacity

     24,289        24,289        0.0  

Community Revenues

   $ 375,247      $ 357,777        4.9  

Community Revenues Excluding Impact of Exchange Rates

   $ 375,130      $ 357,777        4.9  

Community Operating Expenses

   $ 258,087      $ 258,982        0.3  

Community Operating Expenses Excluding Impact of Exchange Rates

   $ 258,065      $ 258,982        0.4  

Average Daily Revenue Per Occupied Unit

   $ 220.07        212.33        3.6  

Average Daily Revenue Per Occupied Unit Excluding Impact of Exchange Rates

   $ 220.01      $ 212.33        3.6  

Average Unit Occupancy Rate

     88.2     87.1     110        basis points   

Communities consolidated

        

Number of Communities

     34        34        0.0  

Unit Capacity

     6,586        6,586        0.0  

Resident Capacity

     6,729        6,729        0.0  

Community Revenues

   $ 88,774      $ 85,012        4.4  

Community Revenues Excluding Impact of Exchange Rates

   $ 88,774      $ 85,012        4.4  

Community Operating Expenses

   $ 69,034      $ 67,017        -3.0  

Community Operating Expenses Excluding Impact of Exchange Rates

   $ 69,034      $ 67,017        -3.0  

Average Daily Revenue Per Occupied Unit

   $ 162.60      $ 156.70        3.8  

Average Daily Revenue Per Occupied Unit Excluding Impact of Exchange Rates

   $ 162.60      $ 156.70        3.8  

Average Unit Occupancy Rate

     88.5     88.7     (20     basis points   

Notes

(1) During the fourth quarter of 2010, Sunrise sold or disposed of 27 communities managed for third-parties and one joint venture community. Sunrise also transitioned 58 joint-venture communities to “manage for third-parties.”
(2) Comparable community portfolio consists of all communities in which Sunrise has an ownership interest in or management agreement with and were under Sunrise ownership or management for at least 24 months as of the January 1, 2010. This includes consolidated communities, communities in ventures and communities managed for third-party owners.